10,000 layoffs to affect NEC’s global workforce

No details have been revealed about the number of layoffs in each region, including Singapore.

NEC Corporation, a Japanese multinational IT company, said it plans to slash 10,000 jobs by September, and about 3000 layoffs will be across its subsidiaries outside Japan.

Most of the cuts are said to be on the company’s mobile phone business.

According to a Reuters report yesterday (Thursday), NEC blamed its poor performance on weak demand for its smartphones amid international rivals such as Apple’s iPhone, as well as difficulty in expanding overseas.

Based on the company's financial report released yesterday, it posted a “revised” net loss of 100 billion yen (US$1.3 billion) for the year to 31 March, from its previous forecast of a 15 billion yen profit (US$194.6 million).

The restructuring would cost the company 40 billion yen (US$ 518.8 million) this financial year but would add the equal amount to income in the next financial year, NEC’s president Nobuhiro Endo said in a press conference in Tokyo.

No details have been revealed regarding layoffs in NEC’s Singapore operations.

“As this is a very initial announcement that would affect all NEC subsidiaries around the world, there are no details about the numbers that would affect each region at the moment,” said its Asia Pacific spokesperson.